▲ President Lee Jae Myung speaks during a Cabinet meeting at Cheong Wa Dae in Seoul on March 5, 2026. (Yonhap)

(3rd LD) Lee-Cabinet meeting

(3rd LD) Lee orders swift execution of 100 tln-won financial package amid Middle East crisis

(ATTN: UPDATES with Lee's remarks on oil price cap, other details)

By Lee Haye-ah

SEOUL, March 5 (Yonhap) -- President Lee Jae Myung ordered the government Thursday to swiftly execute a 100 trillion-won (US$68.3 billion) financial package to stabilize the capital markets amid the widening war in the Middle East.

Lee gave the instruction during an extraordinary Cabinet meeting convened to discuss the situation following last weekend's U.S.-Israeli strikes on Iran, saying the escalating crisis has led to a serious deterioration of the global economic and security environment.

"First, we must actively respond to the increased volatility of the financial markets, such as in stocks and the exchange rate," he said during the meeting at Cheong Wa Dae, which was held a day after he returned from state visits to Singapore and the Philippines.

"Swiftly execute the 100 trillion-won market stabilization program designed to prevent anxiety in the capital markets," he said, adding the caveat that the government should not artificially prop up the stock market by buying shares.

In response to recent fluctuations in gas prices, Lee said the sharp increase did not appear to be based on a serious supply disruption.

He instructed the government to promptly devise a price cap system for each region and oil type, if a uniform cap is difficult to implement nationwide. A system to punish acts of price gouging should also be devised quickly, he said.

Lee floated the idea of beginning a major shift to renewable energy sources, citing the need to minimize reliance on fossil fuels, which are prone to large fluctuations in price.

He also called for strict accountability for people who exploit such instability to spread disinformation or manipulate markets, and singled out those he said are "saying strange things" about North Korea being next in line for a conflict.

Additionally, Lee ordered the government to draw up emergency evacuation plans for South Koreans in the Middle East, saying all means should be employed, including the use of military and chartered aircraft.

He also called for efforts to ensure the safety of South Korean vessels and crew members in waters around the region.

"While frequently checking the safety of our nationals there, if necessary, draw up and execute a swift and safe evacuation plan in cooperation with friendly nations," he added.

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